Concord Investment Partners manages a portfolio of North American equities, options, currencies and fixed income. The Company invests with a 5-20 year time frame in highly liquid equities and other, highly liquid, securities and currencies. Although investing the portfolio with a long term term time horizon, holding periods in individual securities can vary significantly and will not necessarily be held for long periods. In other situations, securities will be held for a very long period of time.
Equity investments, which usually comprise the majority of the portfolio, embody the following characteristics:
- Leading companies in new or emerging growth industries
- Companies that have little or no financial leverage
- Companies that are likely to grow revenues regardless of the economic backdrop
- Companies that are founder led
- Companies in which the founders have an overwhelming majority of their capital invested alongside equity holders
- Companies with strong competitive advantages that are typically derived from intangible assets
The company manages its liquid capital in a manner that tends to:
- Add capital to investments that are growing their market capitalizations
- Reduce capital from positions that are not performing (ie, that are not growing their market capitalizations at a high rate within a reasonable time frame)
- Hold, at minimum, 40 individual investment positions
- Use of options to hedge, generate income, create synthetic positions, or leverage equity positions.
- Makes investments reflecting macro economic trends usually expressed through highly liquid currency or fixed income investments or derivatives thereof.
- Typically between 0% – 150% net long exposure. Investment exposure is achieved through long or short cash positions or through synthetic exposure using options or other derivatives. On occasion will move to 200% long exposure.
- On occasion, will move to net short exposure of up to -100%, or to 200% net long exposure. Short exposures are typically in market indexes, fixed income securities or currencies and not in individual equities, unless for hedging underlying ownership.